Guardian Capital Group Limited (TSE:GCG.A) stock is about to trade ex-dividend in 4 days. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. This means that investors who purchase Guardian Capital Group's shares on or after the 10th of October will not receive the dividend, which will be paid on the 18th of October.

The company's next dividend payment will be CA$0.34 per share, and in the last 12 months, the company paid a total of CA$1.36 per share. Calculating the last year's worth of payments shows that Guardian Capital Group has a trailing yield of 3.2% on the current share price of CA$41.98. If you buy this business for its dividend, you should have an idea of whether Guardian Capital Group's dividend is reliable and sustainable. So we need to investigate whether Guardian Capital Group can afford its dividend, and if the dividend could grow.

Check out our latest analysis for Guardian Capital Group

Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Guardian Capital Group paid a dividend last year despite being unprofitable. This might be a one-off event, but it's not a sustainable state of affairs in the long run.

Click here to see the company's payout ratio, plus analyst estimates of its future dividends. historic-dividend

Have Earnings And Dividends Been Growing?

Businesses with shrinking earnings are tricky from a dividend perspective. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. Guardian Capital Group reported a loss last year, and the general trend suggests its earnings have also been declining in recent years, making us wonder if the dividend is at risk.



Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Since the start of our data, 10 years ago, Guardian Capital Group has lifted its dividend by approximately 21% a year on average.

Remember, you can always get a snapshot of Guardian Capital Group's financial health, by checking our visualisation of its financial health, here.

The Bottom Line

Is Guardian Capital Group an attractive dividend stock, or better left on the shelf? It's hard to get past the idea of Guardian Capital Group paying a dividend despite reporting a loss over the past year - especially when the general trend in its earnings also looks to be negative. Guardian Capital Group doesn't appear to have a lot going for it, and we're not inclined to take a risk on owning it for the dividend.

So if you're still interested in Guardian Capital Group despite it's poor dividend qualities, you should be well informed on some of the risks facing this stock. For example, Guardian Capital Group has 2 warning signs (and 1 which is significant) we think you should know about.

Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.